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How Should Investors React To Webis Holdings plc’s (LON:WEB) CEO Pay?

In 2015 Ed Comins was appointed CEO of Webis Holdings plc (LON:WEB). First, this article will compare CEO compensation with compensation at similar sized companies. After that, we will consider the growth in the business. Third, we’ll reflect on the total return to shareholders over three years, as a second measure of business performance. This method should give us information to assess how appropriately the company pays the CEO.

View our latest analysis for Webis Holdings

How Does Ed Comins’s Compensation Compare With Similar Sized Companies?

At the time of writing our data says that Webis Holdings plc has a market cap of UK£5.1m, and is paying total annual CEO compensation of US$343k. That’s a fairly small increase of 3.3% on year before. We looked at a group of companies with market capitalizations under US$200m, and the median CEO compensation was US$314k.

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That means Ed Comins receives fairly typical remuneration for the CEO of a company that size. This doesn’t tell us a whole lot on its own, but looking at the performance of the actual business will give us useful context.

You can see a visual representation of the CEO compensation at Webis Holdings, below.

AIM:WEB CEO Compensation November 20th 18
AIM:WEB CEO Compensation November 20th 18

Is Webis Holdings plc Growing?

On average over the last three years, Webis Holdings plc has grown earnings per share (EPS) by 64% each year. In the last year, its revenue is up 42%.

This shows that the company has improved itself over the last few years. Good news for shareholders. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.

Although we don’t have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Webis Holdings plc Been A Good Investment?

Most shareholders would probably be pleased with Webis Holdings plc for providing a total return of 100% over three years. So they may not be at all concerned if the CEO is paid more than is normal for companies around the same size.

In Summary…

Remuneration for Ed Comins is close enough to the median pay for a CEO of a similar sized company .

The company is growing earnings per share and total shareholder returns have been pleasing. So one could argue the CEO compensation is quite modest, if you consider company performance!

Or you might prefer this data-rich interactive visualization of historic revenue and earnings.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.